US Custody of Maduro Sparks Debate Over Venezuela's $60 Billion Bitcoin Cache

Introduction

The recent apprehension of Nicolás Maduro by US authorities has reignited discussions about a purported $60 billion Bitcoin reserve controlled by Venezuela. Speculations abound as geopolitical tensions escalate between the two nations.

Key Insights

• Rumors suggest that Venezuela, under Maduro's leadership, amassed a Bitcoin fortune worth up to $60 billion, primarily through sanctions-evasion strategies.
• Alex Saab, a known Maduro confidant, allegedly managed the crypto assets and might still control access to the private keys.

Background

According to a report by The Whale Hunt, the Venezuelan government may possess a secret Bitcoin stockpile significantly larger than the 240 BTC currently reported in public records. These assets were reportedly accumulated by Maduro's inner circle through the illicit use of oil revenue, gold reserves, and state wealth.

Sources indicate that the regime converted these assets into cryptocurrencies to sidestep US sanctions. This conversion involved complex mechanisms like gold swaps, oil-for-USDT deals, and domestic mining operations, with the proceeds eventually stored as Bitcoin.

Involvement of Alex Saab

Alex Saab, viewed as the mastermind of Venezuela's crypto financial operations, allegedly controlled the wallet infrastructure and private keys tied to these reserves. Despite his extradition to the US in 2021, Saab's release in a 2023 prisoner swap has led to speculation about ongoing access to these assets.

Continued Mining and Future Prospects

CNBC's MacKenzie Sigalos highlighted that Venezuela has been involved in Bitcoin and Ethereum mining since 2017, a strategy potentially aimed at countering the national currency's collapse. Reports indicate the government converted oil revenues into Tether before acquiring Bitcoin.

She noted, "The prospect of the US seizing these assets presents a bullish scenario for Bitcoin."